Iridium Announces First-Quarter 2016 Results; Company Affirms 2016 and Long-Range Outlook
Mclean, VA., April 28, 2016--Iridium Communications Inc. (Nasdaq:IRDM) today reported financial results for the first quarter of 2016 and affirmed its full-year 2016 and long-range outlook. Net income was US$ 28.5 million, or US$ 0.23 per diluted share, for the first quarter of 2016, as compared to US$ 21.0 million, or US$ 0.17 per diluted share, for the first quarter of 2015. Operational EBITDA ("OEBITDA") for the first quarter was US$ 60.7 million, as compared to US$ 52.5 million for the prior-year period, representing a year-over-year increase of 16% and an OEBITDA margin of 58%. OEBITDA grew primarily due to higher government service revenue and increased sales of subscriber equipment, as well as to lower manufacturing costs on certain product lines.
Iridium reported first-quarter total revenue of US$ 104.2 million, which consisted of US$ 79.8 million of service revenue and US$ 24.4 million of revenue related to equipment sales and engineering and support projects. Total revenue increased 7% versus the comparable period of 2015, while service revenue grew 6% from the year-ago period. Service revenue, which represents primarily recurring revenue from Iridium’s growing subscriber base, was 77% of total revenue for the first quarter of 2016.
The company ended the quarter with 788,000 total billable subscribers, which compares to 748,000 for the year-ago period and is up from 782,000 for the quarter ended December 31, 2015. Total billable subscribers grew 5% year-over-year, driven by growth in machine-to-machine (“M2M”) and government customers.
“We delivered solid revenue growth in the first quarter and reaffirmed our full-year and long-range outlook, in spite of continued macro-economic headwinds affecting our commercial business,” said Matt Desch, CEO, Iridium.
Commenting on Iridium NEXT, Desch said, “With our first launch with SpaceX this summer, our primary focus remains on constellation replacement and the introduction of new business services. The first Iridium NEXT satellites are now complete, and production is ramping up well. All the pieces of our program are coming together nicely as we enter our launch campaign.”
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